Assistance of centre may not be required in the Metro project
Financial assistance of Central government for the Jaipur Metro Phase-I project might not be taken by the state government.
“The total project cost for Phase-I is Rs 3,149 crore said a senior official source. The previous state government had sanctioned Rs 1,802. More funds might not be required as recently, the BJP-led government, too, has sanctioned Rs 500 crore for the same and even Asian Development Bank (ADB) has sanctioned a loan of Rs 969 crore.”
The BJP government after coming to power has overlooked the proposal; the Central government had sanctioned Rs 627 crore sanctioned for the project. However,
With this the decision of previous government to sign memorandum of understanding (MoU) for the joint venture is expected to be shelved.
“To sign an MoU for the joint venture, On November 22, 2013, the Centre sent a proposal to the chief secretary, government of Rajasthan, to sign an MoU for the joint venture, As the election code of conduct was enforced, it could not happen at that time. As the agreement is yet to be signed.” an official source said.
As per the norms, the Centre will have a 20% stake in the project and this might be holding back the new state government in the joint venture. The Central government will provide funds in the form of equity.
The money sanctioned by the recent state government will be received in this financial year after the elections. Sources added that though funds are approved paucity of cash-in-hand might hit the project. “While the amount from ADB and state government remains on paper, the available funds with the JMRC are exhausting quickly “As Metro deadline is fast approaching, the construction at project sites has gained momentum.
“The corporation has maximum on the project. The JMRC has so far received only Rs 1,802 crore sanctioned by the previous state government. There is no ray of hope to receive funds in the near future As the code of conduct is enforced soon for the Lok Sabha elections, ,” the source said.
The bank is willing to release the funds, but is held back by the lack of progress in the project. “The JMRC cannot even ask the ADB to lend advance money as it will only release money only after construction begins on site,” the source added as The ADB had recently given in-principle approval to provide a loan of Rs 969 crore.
Source: Times of India
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